Question

1. Write-up the appropriate day books or Journals.

(All cash expenditure under $50 should be recorded as Petty Cash.)

2. Write-up the proper accounting subsidiary books for all information.
3. Open all accounts in the appropriate Ledgers.
4. Balance all accounts and extract a Trial Balance.
5. Prepare the Final Accounts:
   1. Trading and Profit and Loss Accounts
   2. Balance Sheet

R. Sedeno had the following assets and liabilities on 31^st December, 2019.

Items                                                  $                      Items                          $

Cash                                                    100                 Bank                            2,180

Stock                                                  5,900                Petty Cash                120

Furniture and Fittings                      6,800              Equipment                 3,200

Motor Vehicle                                    17,500             Premises                   40,000

Debtors:                                                                     Creditors:

            L. Robertson                          1,900                          T. Hosein        250

            H. Henry                                 520                             N. Akua           1,200

Transactions during the month of January 2020 were as follows:

1          Paid N. Akua’s account less 5% discount by cheque.

2          Bought $20 stamps and $40 in stationery from cash.

3          Withdrew $200 cash from bank for office use.

6          Cash sales $1,600 of which $1,600 was banked.

8          Paid wages $800 and advertising expense $300 by cheque.

14        Robertson paid his account in cash less 3% discount.

            He bought a further $400 worth of goods on credit.

16        Received a month’s rent for a sub-let office $1,500 by cheque.

18        Cash purchase of $1,800.

20        Sedeno drew a $1,250 cheque for private use and made a down-payment of $1,000 to Ocean View Resort for a family vacation in August.

22        Bought a computer $5,000 on credit from T. Hosein.

23        Bought $860 worth of goods from T. Hosein on credit.

            Paid for cleaning supplies $36 in cash.

25        Bought a computer desk $3,000 on credit from T. Hosein.

26        Paid wages $1,200 by cheque. Returned $160 of goods bought from T. Hosein on 23^rd January. Paid Hosein’s account at the beginning of the month in cash.

28        Sold good to H. Henry invoiced at $600 less 10% trade discount.

            Purchase goods $430 on credit from N. Akua.

30        Henry returned $40 of the goods bought the previous day and paid the balance in cash.

            Sedeno borrowed $2,000 from his sister C. Sedeno.

31        Petty Cashier is reimbursed.

            **********

Closing stock was counted and value at $4,800.

Answer 1